- Sep 3, 2014
You know both of these as "native advertising" companies. That was always a giant misnomer, but whatever, they kill it. Zergnet is better at it, if you ask me, but these two are definitely the monsters. You typically see them at the bottom of posts, acting as "similar content" blocks where you'd send users to other posts in the same category. Except here you send them off site and receive a CPC payment for the click.
Well, these "content recommendation engines" have just inked the deal to merge under the name Taboola, providing Taboola with a 70% stake while paying Outbrain shareholders $250 million plus a 30% stake. The new company will be valued at $2 billion. The numbers crunch out to (30% of $2 billion = $600 million + $250 million payout = $850 million merger).
The Taboola founder and CEO Adam Singolda will act as lead for the ~2,250 employees in New York, Tel Aviv, and other cities globally.
The merger bumps them up to having placements on over 20,000 properties and exposure to an audience of 2.6 billion.
Both companies were profitable and each clearing over $1 billion in revenues annually. They managed this on investments of $160 million (Taboola) and $194 million (Outbrain). Impressive! Taboola was founded in 2007 and Outbrain in 2006.
This deal has been in the making since 2015, with less serious talk for over a decade.